Question 1

Briefly distinguish between adjusting and closing entries.

Accepted Answer

Adjusting entries update the a

Question 2

During the closing process,revenues are transferred to the debit side of the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 3

Despite the many uses of laptop computers,they cannot be used to prepare work sheets.

Accepted Answer

A) True 
 B)False

Question 4

Prepare closing entries for December (omit explanations)from the following Income Statement columns of the work sheet of Kemp Corporation,assuming that a $1,000 withdrawal was made during the period.

Accepted Answer

The answer of Prepare closing entries for December (omit explanations)from...

Question 5

Closing entries deal primarily with the balances of real accounts.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following accounts might appear in the adjusted trial balance but not in the post-closing trial balance?

Accepted Answer

A) Depreciation Expense-Equipment 
B) Owner's Capital 
C) Unearned Revenue 
D) Income Summary 
A) Depreciation Expense-Equipment 
B) Owner's Capital 
C) Unearned Revenue 
D) Income Summary

Question 7

Preparing the work sheet and closing entries

Accepted Answer

A) saves money. 
B) prevents mistakes. 
C) provides a mechanism for applying the periodicity concept. 
D) All of these choices. 
A) saves money. 
B) prevents mistakes. 
C) provides a mechanism for applying the periodicity concept. 
D) All of these choices.

Question 8

An adjusted trial balance provides all the data needed to record the closing entries.

Accepted Answer

A) True 
 B)False

Question 9

Discuss reversing entries by addressing each of the following questions:
a.Are reversing entries required?
b.When are reversing entries prepared?
c.Are reversing entries posted to the ledger?
d.What is the purpose of reversing entries?
e.Can all adjusting entries be reversed? If not,which adjusting entries can be reversed?

Accepted Answer

a.Reversing entries are not required,the

Question 10

Which of the following accounts will have an amount in the Adjustments columns of the work sheet but probably not in the Trial Balance columns?

Accepted Answer

A) Owner's Capital 
B) Revenue from Services 
C) Depreciation Expense-Machinery 
D) Utilities Expense 
A) Owner's Capital 
B) Revenue from Services 
C) Depreciation Expense-Machinery 
D) Utilities Expense

Question 11

The amount for the Withdrawals account will appear in the Income Statement columns of a work sheet.

Accepted Answer

A) True 
 B)False

Question 12

Indicate with an X in the appropriate column the type of entry to be made to close the following accounts:

Accepted Answer

The answer of Indicate with an X in the appropriate...

Question 13

The owner's Capital,Withdrawals,and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:   The total amount of expenses for the period is

Accepted Answer

A) $500. 
B) $700. 
C) $400. 
D) $100. 
A) $500. 
B) $700. 
C) $400. 
D) $100.

Question 14

Using the following information and the trial balance accounts and balances in the work sheet provided,complete the work sheet.
a.Expired insurance totals $260.
b.Of the unearned revenue,all has been earned by the balance sheet date.
c.Estimated depreciation of equipment is $120.
d.Accrued wages equal $400.
e.Unused supplies on hand are $90.

Accepted Answer

The answer of Using the following information and the trial...

Question 15

When the Income Statement columns of the work sheet are initially footed,they should be in balance.

Accepted Answer

A) True 
 B)False

Question 16

An adjusting entry was made on the last day of the previous fiscal year debiting Wages Expense and crediting Wages Payable.If a reversing entry has been made,then at the time of payment

Accepted Answer

A) the accountant needs to find out how much of the payment applies to the current period and how much applies to the previous period. 
B) the accountant will debit Wages Payable and Wages Expense,and credit Cash. 
C) the accountant will debit Wages Expense and credit Cash. 
D) the accountant will debit Cash and credit Wages Expense. 
A) the accountant needs to find out how much of the payment applies to the current period and how much applies to the previous period. 
B) the accountant will debit Wages Payable and Wages Expense,and credit Cash. 
C) the accountant will debit Wages Expense and credit Cash. 
D) the accountant will debit Cash and credit Wages Expense.

Question 17

Reversing entries are all dated as of the first day of the new accounting period.

Accepted Answer

A) True 
 B)False

Question 18

Closing entries are important to managing a business because

Accepted Answer

A) the owners expect periodic reports of the progress of the business. 
B) management needs to prepare budgets for future time periods. 
C) to assess progress toward goals,managers need to divide the life of the business into relatively short time periods. 
D) All of these choices. 
A) the owners expect periodic reports of the progress of the business. 
B) management needs to prepare budgets for future time periods. 
C) to assess progress toward goals,managers need to divide the life of the business into relatively short time periods. 
D) All of these choices.

Question 19

In preparing adjustments to the work sheet,which of the following accounts could not be added to the Account Name column?

Accepted Answer

A) Interest Receivable 
B) Notes Payable 
C) Depreciation Expense-Equipment 
D) Interest Income 
A) Interest Receivable 
B) Notes Payable 
C) Depreciation Expense-Equipment 
D) Interest Income

Question 20

An important purpose of closing entries is to

Accepted Answer

A) help achieve the goals of the matching principle. 
B) set permanent account balances to zero to begin the next period. 
C) update the nominal accounts at year end. 
D) transfer net income or net loss to the owner's Capital account. 
A) help achieve the goals of the matching principle. 
B) set permanent account balances to zero to begin the next period. 
C) update the nominal accounts at year end. 
D) transfer net income or net loss to the owner's Capital account.

Briefly distinguish between adjusting and closing entries.

During the closing process,revenues are transferred to the debit side of the Income Summary account.

Despite the many uses of laptop computers,they cannot be used to prepare work sheets.

Prepare closing entries for December (omit explanations)from the following Income Statement columns of the work sheet of Kemp Corporation,assuming that a $1,000 withdrawal was made during the period.

Closing entries deal primarily with the balances of real accounts.

Which of the following accounts might appear in the adjusted trial balance but not in the post-closing trial balance?

Preparing the work sheet and closing entries

An adjusted trial balance provides all the data needed to record the closing entries.

Which of the following accounts will have an amount in the Adjustments columns of the work sheet but probably not in the Trial Balance columns?

The amount for the Withdrawals account will appear in the Income Statement columns of a work sheet.

Indicate with an X in the appropriate column the type of entry to be made to close the following accounts:

The owner's Capital,Withdrawals,and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The total amount of expenses for the period is

When the Income Statement columns of the work sheet are initially footed,they should be in balance.

An adjusting entry was made on the last day of the previous fiscal year debiting Wages Expense and crediting Wages Payable.If a reversing entry has been made,then at the time of payment

Reversing entries are all dated as of the first day of the new accounting period.

Closing entries are important to managing a business because

In preparing adjustments to the work sheet,which of the following accounts could not be added to the Account Name column?

An important purpose of closing entries is to

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters

Exam 4: Completing the Accounting Cycle

Briefly distinguish between adjusting and closing entries.

During the closing process,revenues are transferred to the debit side of the Income Summary account.

Despite the many uses of laptop computers,they cannot be used to prepare work sheets.

Prepare closing entries for December (omit explanations)from the following Income Statement columns of the work sheet of Kemp Corporation,assuming that a $1,000 withdrawal was made during the period.

Closing entries deal primarily with the balances of real accounts.

Which of the following accounts might appear in the adjusted trial balance but not in the post-closing trial balance?

Preparing the work sheet and closing entries

An adjusted trial balance provides all the data needed to record the closing entries.

Which of the following accounts will have an amount in the Adjustments columns of the work sheet but probably not in the Trial Balance columns?

The amount for the Withdrawals account will appear in the Income Statement columns of a work sheet.

Indicate with an X in the appropriate column the type of entry to be made to close the following accounts:

The owner's Capital,Withdrawals,and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The total amount of expenses for the period is

When the Income Statement columns of the work sheet are initially footed,they should be in balance.

An adjusting entry was made on the last day of the previous fiscal year debiting Wages Expense and crediting Wages Payable.If a reversing entry has been made,then at the time of payment

Reversing entries are all dated as of the first day of the new accounting period.

Closing entries are important to managing a business because

In preparing adjustments to the work sheet,which of the following accounts could not be added to the Account Name column?

An important purpose of closing entries is to

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters